TE Connectivity said Wednesday it is in talks to pay $2.06 billion to acquire connector manufacturer Deutsch Group, of East Sussex, U.K., from owner Wendel.
Completion of the transaction is subject to customary regulatory consents and approvals and acceptance of the binding offer by Wendel, which can only occur after consultation with Deutsch’s workers’ councils. TE Connectivity expects to finance the pending acquisition through a combination of cash and debt. The potential acquisition is expected to close by the third fiscal quarter ended June 29, 2012.
“Deutsch is an outstanding company with a long history of leadership in providing custom-engineered connectivity products for harsh environment industrial applications,” said Tom Lynch, CEO of TE Connectivity. “The acquisition of Deutsch is a major step in executing our vision to provide the most complete range of connectivity solutions for our customers worldwide. The complementary nature of the products provided by our two companies will enable us to better serve customers in key industries, especially Industrial Transportation, Industrial Equipment, Aerospace and Defense, Rail, and Offshore Oil and Gas. With our global reach and scale, we expect to expand the growth of Deutsch’s products.”
Bertrand Dumazy, president and CEO of Deutsch, said, “The combination of our two companies allows Deutsch to join a large global organization with a very good reputation in the connectivity industry. The very strong complementary positioning of our teams, our operations, our technologies and our products will allow us to improve our commercial position from a geographic standpoint as well as in serving customers.”